Milking Opportunity: One Farmer’s Journey Reflects the Job Potential of Ethiopia’s Dairy Sector

Across rural Ethiopia, livestock production is a source of food but it is also an important pathway to jobs and economic opportunity. When smallholder farmers gain access to better technology, markets, and collective organizations, dairying can grow from a subsistence activity into a viable rural enterprise that creates income and employment along the value chain.

For Ayelech Tarekegn Mekebo, a mother of three from Kedida Gamela woreda in the Kembata Tembaro zone of Central Ethiopia region, this transformation began with a single cow and continued on to her becoming a proud member of a thriving dairy cooperative. As she looks at her herd today, she sees more than milk and income. She sees a journey that turned a modest household activity into a growing business, built step by step through learning, cooperation, and opportunity.

Back in 2006, Ayelech was like many smallholder farmers. Her family depended on subsistence farming, and resources were limited. She owned just one local cow, producing enough milk mainly for household consumption, with a little extra sold nearby. Life was predictable, but fragile. Still, Ayelech believed that farming could be more than survival, it could be a pathway to stability if she found the right knowledge and support.

That turning point came when she was introduced to improved dairy practices by the World Bank-supported Livestock and Fisheries Sector Development Project (LFSDP). With curiosity and determination, Ayelech began adopting the new techniques she learned, such as artificial insemination and crossbreeding. Slowly, her herd improved. Milk production increased and sales of it brought a regular income. What made the biggest difference, she recalls, was not only the technology, but the encouragement and guidance she received through the project. Training sessions, technical advice, and in-kind support helped her gain confidence and see herself as an active participant in the dairy value chain, not just a producer at the margins.

Ayelech's mindset shifted. She started to see herself not only as a smallholder farmer but as an entrepreneur participating in Ethiopia's growing dairy economy. By improving productivity and linking farmers to organized markets, projects like LFSCP help create jobs across the dairy value chain-from animal care and milk collection to processing, transport, and retail. Ayelech improved herd management and modern animal husbandry practices, allowing her to make better decisions every day, how to feed her animals, how to manage production, and how to plan for the future. What began as one lactating local cow gradually turned into a more productive herd, capable of generating sustainable income and supporting her household.

In 2021, Ayelech joined hands with 12 neighbors who shared the same vision. Together, they formed a Common Interest Group (CIG), marking an important step from working alone to working collectively. With project support, the group received construction materials, improved forage seeds, water troughs, milk cans, and concentrate feed. More importantly, they began to share experiences, challenges, and solutions. The group became a space for learning and mutual encouragement.

By 2022, this collective effort grew even stronger. Ten CIGs merged to form the Enat Milk Collection and Marketing Cooperative, transforming small, scattered producers into an organized force. With additional project support, the cooperative built a milk collection center and was equipped with refrigerators, milk quality testing equipment, milk cans, and a Bajaj vehicle to transport milk efficiently. For members like Ayelech, this meant better milk quality, less waste, and access to larger and more reliable markets.

Today, Ayelech supplies about 20 liters of milk per day to her cooperative. She sells her milk at 80 Birr per liter and receives payments every ten days, earning between 10,800 and 14,400 Birr per payment cycle. Once a year, she also receives dividends from the cooperative, something she never imagined years ago. So far, she has received dividends three times, each amounting to at least 27,500 Birr.

The benefits extended even further when the cooperative became a member of the Tsedal Multipurpose PLC Union, which received support from LFSDP. Through this union, Ayelech and her fellow cooperative members gained access to improved processing opportunities, strengthening their position along the dairy value chain.

The Union plays a significant role in dairy processing. Founded in 2015, it started with a strong membership of 17,100 individuals. To kick off its dairy operations, the union crafted a detailed business plan and benefited from substantial support from LFSDP. With this assistance, Tsedey Union built a modern dairy processing facility, outfitted with up-to-date machinery. Its members received specialized training to strengthen their technical expertise and operational know-how. The facility includes a laboratory, a dedicated milk reception area, and high-tech production zones, all designed to uphold excellent hygiene and quality standards. To make distribution more efficient, the union has also established retail shops in Durame town, bringing products directly to consumers. At present, the union collects more than 2,000 liters of whole milk each day from its members. Of this amount, about 1,500 liters are processed into various dairy products such as cheese, butter, yogurt, and whey. The remaining 500 liters are sold as pasteurized and poached whole milk. Thanks to streamlined operations and strong market access, the union achieves a gross daily income of over 195,000 ETB ($1,260) and maintains uninterrupted production and distribution throughout the week.

Ayelech's story is one of steady progress, about learning, organizing, and believing that small improvements can add up to something powerful. From one cow to a cooperative, her journey shows how investments in agricultural productivity, market access, and collective enterprise can unlock new opportunities for rural communities. Rural women farmers can transform their livelihoods when knowledge, collective action, and opportunity come together. And for Ayelech, the journey continues now with confidence, knowledge, connection, and a future she helped build herself.